Lumin CEO Max Ferguson says AI fraud is eroding trust.
photograph: Supply/Lumin
More than half of businesses report AI-mediated identity fraud, with each attack costing an average of $2.2 million.
Christchurch-founded document workflow provider Lumin said advanced impersonation techniques are reaching new heights, with 90% of 1000 organizations surveyed across the US, New Zealand and Australia concerned that their critical workflows are vulnerable to AI-powered fraud.
90% of New Zealand organizations believe the processes they use to sign, verify and complete legally binding business contracts are weak.
Lumin CEO Max Ferguson said AI fraud is undermining trust.
The report’s findings are: Digital identity in business: threats, impacts, and opportunitiesshows that advances in AI are seriously undermining business trust, with the majority of New Zealand organizations seeing past misconduct as a major deterrent to working with potential partners.
The report shows that 69 per cent of New Zealand businesses are reluctant to work with a partner who has recently experienced an identity fraud incident.
“With AI superintelligence threatening cybersecurity at our doorstep, vulnerable contract workflows are a gold mine for fraudsters,” the report said.
“When these systems fail, sensitive financial, corporate, and personal information is exposed. These breaches often result in large-scale data breaches and catastrophic economic damage, so securing these digital processes is no longer an option.”
Mr Ferguson said the goal was to improve business resilience and help New Zealand remain a trusted place to do business.
“We see the reality of this threat every day, with fraudsters pretending to be me to show staff or targeting account teams with fake invoices. AI is honing these fraud tactics to the point where they directly threaten the interconnectedness of our business ecosystem and the trust that keeps it running smoothly.”
“Preventing identity fraud is no longer the sole responsibility of IT departments.
“Companies need to be aware that this issue can impact any department and needs to be addressed at board level.
“The industry needs to move beyond simply capturing signatures to verifying signers. By evolving how we protect identities now, we can protect our reputations and our future.”
The report shows two-thirds (67%) of New Zealand organizations plan to increase investment in identity verification technology and processes over the next two years.
“Although this level of investment still falls short of Australia (82%) and the US (78%), there is a clear push for modernized solutions, with 85% of New Zealand businesses also supporting the introduction of government-issued digital IDs, with the ability to significantly facilitate identity verification being the main driver.”
Mr Ferguson said New Zealand business leaders must take action to make identity fraud prevention a strategic priority by assessing and addressing vulnerabilities without delaying the signature process.
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